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country screening
using countries as the basis for market selection
segment screening
using markets segments as the basis as for market selection
Market indicators
Economic data used to measure relative market strengths of countries or geographic areas
Market Factors
Economic data that correlate highly with market demand for a product 
Estimation by analogy
Process of using a market factor that is successful in one market to estimate demand in a similar market
Cluster analysis
Statistical technique that divides objects into groups so that the objects within each group are similar
trade mission
A group of businesspeople and/or government officials (state or federal) that visits a market in search of business opportunities
trade fair
A large exhibition, generally held at the same place and same time periodically, at which companies maintain booths to promote the sale of their products
social desirability bias
The custom of politeness toward everyone that can cause respondents to give answers calculated to please the interviewer rather than to reflect the respondent's true beliefs or feelings
Market screening
firms uses environmental forces to identify desirable markets 1)
Environmental scanning
firms scans world for changes in environmental forces that might affect it
Selection of foreign markets
basic needs economic financial screen political/legal screen socio cultural screen competitive screen final selection
Second screening - financial and economic forces
reduces potential markets through analysis of financial economic forces: -inflation trends - currency exchange rates -interest rates -credit availability - paying habits of customers -rates of return o similar investments
Trend analysis
successive observations of a variable at regular intervals analyzed to establish regular patterns that are used for establishing future values
Entry barriers
Import restrictions, local participation requirements, local content restrictions, government-owned competition
profit remittance barriers
Restrictions on the repatriation of earnings, limits to FDI, inability to provide foreign exchange
Policy Stability
Political climate, government stability, public unrest
Socio cultural forces screening - fourth screening
-sociocultural factors are fairly subjective -data are difficult to assemble, particularly from a distance
Third screening
entry barriers profit remittance barriers policy stability
fifth screening- competitive forces
To compete in countries with STRONG COMPETITION, management must: Maintain a strategic presence where global competitors are, or Enter a competitor's home market to distract attention
Final selection of new markets
Field Trip Government-sponsored trade missions and trade fairs Local research Cultural issues Technical difficulties Research as Practiced
two screening methods, reconsidered
Conventional View: -The world is organized along national lines Need to Adopt an Expanded View, because... -Multiple subcultures exist within nations -Subcultures are similar across nations The nation may no longer be the relevant unit of analysis

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